CRM White Paper

Customer Relationship Management : An Introduction

Customer Relationship Management entails all aspects of interaction a company has with
its customer, whether it is sales or service related; it starts with the foundation of
relationship marketing. CRM is a systematic approach towards using information and on
going dialogue to built long lasting mutually beneficial customer relationship. The use of
CRM technology forms the crucial front-end of any e-business strategy, essentially CRM
has emerged as a convivial weapon in the hands of the industry laggards as well as
leaders to cascade the business suites; the only touch point which is formulating this base
is the awareness amongst the corporatists to suffice the customers already available to the
companies to large extent.

In today's fast-paced, competitive business environment it's more important than ever to
create and maintain long-lasting business relationships.

Today, Customer Relationship Management (CRM) manages business processes

spanning sales, support, and marketing creating effective customer interactions. Given
the purpose of CRM, the functionality is straightforward, and the benefits of successful
deployments clearly generate value and profitability for any company. Great CRM
solutions need to encourage users to interact with the application as well as be in-tune
with the business and IT cost-saving needs.

" For the modern day CRM to be world class it needs to be revolutionary in market
incursion and evolutionary in technological up gradation."

Today the major business focus is towards endowing value addition to the sales cycle,
and customer retention rather than constructing a new customer base which is costlier and
also an uncertain chase from business perspective. The basic philosophy behind CRM is
that a company's relationship with the customer would be the biggest asset in the long
run.

It is now vital for CRM vendors to develop a sound understanding of their target
organizations' customer and deliver them with solutions which help in achieving long
term business relations with their customers. Vendors must also build long-term
Customer Relationship Management strategies with the end-user organizations to assure a
series of deployments, and hence ensuring a regular revenue stream for themselves as
well as their customers.

Evolution of CRM - A Diagrammatic Representation

Before implementing any Customer Relationship Management solution in the
organization there are many Question's which need a comprehensive explanation from
the users' point of view

• What is the added value preposition of the CRM to the organization?

• What would be the environment under which the implementation would be done?
• How would the synergies be reflecting in the processes of the company?

These are mere stencils of the holistic scenario prevalent right now, and are to a great
extent a factor which harms the opportunities of long term survival for any CRM vendor.

CRM White Paper

Needs for CRM

The change from the profit orientation of a business to customer centric unit has lead to
the surge of CRM inculcation in the modern business scenario. Gone are those days when
a business was just a hub of wealth creation. These days it is impossible for a business to
survive, without being focused upon the needs and expectations of the customers.

The quick and easy access to the database of prospective customers brings along
efficiency in the business processes. A simple framework upon which CRM products
bring a vital value addition is given beneath.
Shown above is the integration of different business processes which fit in with their own
weighed importance to a business cycle, at the end they all submerge to the marketing
database as shown in the figure to help in the follow-up of prospective customers for
long term.

Advantage of CRM?

By using CRM methodology, an enterprise can:

• Provide better customer service

• Increase customer revenues
• Discover new customers
• Cross sell/Up Sell products more effectively
• Help sales staff close deals faster
• Make call centers more efficient
• Simplify marketing and sales processes

The Types of data, CRM software collects

• Responses to campaigns
• Sales and purchase data
• Account information
• Web registration data
• Service and support records
• Demographic data

CRM White Paper

Why CRM?

Highly competitive marketplace

The emerging channels have transmitted the marketplace into a fierce battle field

The new empowered e-customer

The customer is now well aware of the market opportunities, through Internet & other
sources
Ever changing technology
New technologies provide a way to provide personalized solution at individual level

Making business sense

Companies that provide customers with what they want, take share of wallet from those
who don't

The ever growing demand of CRM solutions find it's foundation in the perpetual shift of
the market circumstance, and escalating leap forward in strategy formulation towards the
customers.

A survey (result shown below) highlights the emergent base of CRM:

• The cost to sell to a new customer is six times greater as compared to an existing
customer
• A disappointed customer will notify 8-10 people
• With an increase of 5% customer retention rate, profits could increase by 85%
• Probability of selling to fresh customers = 15%, as judged against for existing
customers which amounts to 50%
• 70% of the complaining customers will remain faithful if problem is resolved
• 90% of companies do not have the sales and service integration to support e-
commerce

These are enough reasons for any small or big organization to have a customer
orientation and go in for solutions which help them achieve this objective.

Few broadly defined parameters where a CRM can help an organization are:

• Intent
Creating the base upon which the customer relationship would be managed and
turned to value proposition.
• Tactic
To focus and work upon turning the customer base into an asset for the business
entity.
• Value satisfaction
Ensuring that the customers are endowed with the value satisfaction they have
visualized, it is to reduce the dissonance amongst the prospective long term
customers
• Organizational change
With the changing business environment and multi cultural aspects, businesses
require a distinct approach towards the customers as well as the employees.
Undeniably a SMARTER pursuit would be the introduction of a comprehensive
CRM suit in the organization.
• Procedure
Merely streamlining the internal processes would do no wonders to an
 organization, a holistic approach would work towards creating and maintaining
customers for life long.
• Update
Unanimously, data recording is a great aspect of every CRM suit which makes it
perfect blend of information and facilitation.

CRM White Paper

CRM Market Segmentation

The CRM market is divided into two segments, broadly identified as: -

• Preserving Customers
Simultaneously in the way to add value to a customer life cycle, emphasis is given
upon providing better service to the customers through out. It has become
mandatory for the enterprises to spend a generous volume upon customer
servicing, in order to retain their customers for a long period
• Detecting Customers
Daffodil CRM modules work together to give you up-to-date customer
information that can be shared across various departments in your organization.
The leads and task modules are completely integrated and give all staff and
employees complete access to customer information gathered throughout the
organization.

o Lead management: To manage leads of potential customers from the

origination to the conclusion of the sales cycle.
o Campaign management: To track the leads through executing effective
marketing campaigns.
o Market fact list: Providing relevant information regarding the market
pattern in respect to the prospective customers.
o Exchange centre: CRM is many times involved in voice calls as well as
internet servicing to the customers.

These are mere stencils of the holistic scenario prevalent right now, and are to a great
extent a factor which harms the opportunities of long term survival for any CRM vendor.